CSR Policy

PREAMBLE

Pursuant to provisions of Section 135 of the Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014 every Company having net worth of Rs. 500 Crores or more or turnover of Rs. 1,000 Crores or more or net profit of Rs. 5 Crores or more during any financial year shall constitute Corporate Social Responsibility Committee (“CSR Committee”) and the CSR Committee shall formulate and recommend the policy.

Accordingly, the Board constituted the CSR Committee of the Board, pursuant to Section 135 of the Companies Act, 2013 consisting of 4 members, of which two are the Independent Directors. The CSR Committee shall :

Formulate and recommend to the Board, a CSR Policy which shall indicate activities to be undertaken by the Company as specified in Schedule VII of the Companies Act, 2013,

Recommend the amount of expenditure to be incurred on CSR activities,

Monitor the CSR policy of the Company from time to time.

Objectives of the Policy

The policy shall be read in line with section 135 of the Companies Act, 2013, Companies (Corporate Social Responsibility Policy) Rules, 2014 and such other rules, regulations, circulars, and notifications as may be applicable and as amended from time to time and will, inter alia, provide for the following:

Establishing guidelines for compliance with the provisions of Regulations to dedicate a percentage of Company’s profits for social projects,

Ensuring the implementation of CSR initiative in letter and spirit through appropriate procedures and reporting.

CSR Activities

The Policy recognises that corporate social responsibility is not merely compliance; it is a commitment to support initiatives that measurably improve the lives of underprivileged by one or more of the following focus areas as notified under Section 135 of the Companies Act 2013 and Companies (Corporate Social Responsibility Policy) Rules 2014:

Activities not included in CSR

Following shall not be included in CSR:
(i) Activities undertaken in normal course of business.
(ii) Activities undertaken outside India
(iii) Contribution to any political party.
(iv) Activities benefiting only for employees of the Company.
(v) Activities not covered within Schedule VII of the Companies Act 2013.

Allocation of Funds

The Company would spend, in every financial year at least 2% of average net profits of the Company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy.

The Company shall give preference to the local area and areas around it where it operates, for spending the amount earmarked for Corporate Social Responsibility activities.

If a Company fails to provide or spend such amount, the Board shall specify reasons for not spending the amount in its Directors Report under clause (o) of sub – section of section 134, specify the reason for not spending the amount.

Planning & Coordination

Company will prepare an annual plan for CSR activities for each year within the budgetary provisions and will place the same before the CSR Committee and the Board of Directors for approval.

The focus of benefits will be in line with activities mentioned in projects/ programs and schemes approved by the 2013 Act.

CSR Activities to be stated in the Board Report and Website

The Board of Directors’ Report as per section 134(3) of the Companies Act 2013 shall disclose the composition of the Corporate Social Responsibility Committee formed as per section 135(2) of the 2013 Act.

The copy of the policy shall also be displayed on the website of the Company.

Amendments to the Policy

The Board of Directors as per the recommendations of CSR Committee can amend the policy. The policy would be subject to revision/ amendment in accordance with the Regulations issued from time to time by the Statutory Authorities. The Policy will be subject to review every year.